Import scrap prices in India have lost ground but have still failed to trigger strong demand, with buyers even submitting lower bids and waiting for the downtrend to gain further momentum before committing bookings, SteelOrbis learned from trade and industry circles on Wednesday, May 22.
Ex-Europe containerised shredded scrap is quoted in the range of $415-420/mt CFR Nhava Sheva port in the west, lower than $425-430/mt CFR a week ago. A deal for 1,000 mt of ex-US shredded was done at $420/mt CFR early this week, down by $5-8/mt from bookings in the middle of last week.
But despite sellers lowering prices, buyers are heard to be submitting bids at around $410/mt CFR for shredded scrap at the moment.
Ex-Europe and ex-UK HMS (80:20) scrap prices are at $400-405/mt CFR, down by $5/mt over the past week. Bids were reported at $395-400/mt CFR for this grade, but sellers have been declining such bids so far, the sources said.
“Buyers are on wait and watch after making sufficient bookings in March and April, scheduled to arrive at ports in May and June. Also, they are submitting low bids expecting the market to seek a new bottom. But sellers are not yet looking at these low bids, leading to stagnant trade conditions,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“Despite local buyers waiting for a downtrend, import scrap prices may not face very much of a downside risk considering the strong performance of the euro currency and rising collection costs of scrap in the west,” he said.